Diesel Issues Could Escalate Amidst OPEC+ Crude Shortage Concerns

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Written By Jennifer Joslyn

⛽️ Diesel Issues Could Escalate Amidst OPEC+ Crude Shortage Concerns.

The diesel market is facing a crisis as output curbs from countries like Saudi Arabia and Russia limit the supply of medium and heavy crudes, crucial for diesel production. Refiners are increasingly using different crudes, resulting in a 1.5% drop in the diesel yield expected next quarter compared to the previous year. This translates to a loss of 1.2 million barrels per day, exacerbating an already tight diesel market. Despite higher overall processing rates, this decrease in diesel production won't be fully compensated for. The situation is worsened by OPEC+ cuts, which have driven refiners to process lower-density crude, reducing diesel-type fuel output. Plant focus on other products, such as jet fuel and gasoline, has also contributed to lower diesel yields.

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Jennifer Joslyn
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